Senator Gene Davis proposes the following substitute bill:


1     
CONSUMER ALCOHOLIC BEVERAGE PURCHASING

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Gene Davis

5     
House Sponsor: Timothy D. Hawkes

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions of the Alcoholic Beverage Control Act regarding consumer
10     purchasing.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     creates the Division of Consumer Purchasing (division) within the Department of
15     Alcoholic Beverage Control;
16          ▸     moves the wine subscription program under the administration of the division;
17          ▸     requires the division to establish a consumer purchasing system;
18          ▸     outlines the parameters of the consumer purchasing system; and
19          ▸     grants the Alcoholic Beverage Control Commission rulemaking authority.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:

26          32B-2-701, as enacted by Laws of Utah 2020, Chapter 178
27          32B-2-702, as enacted by Laws of Utah 2020, Chapter 178
28          32B-2-703, as enacted by Laws of Utah 2020, Chapter 178
29     ENACTS:
30          32B-2-212, Utah Code Annotated 1953
31          32B-2-801, Utah Code Annotated 1953
32          32B-2-802, Utah Code Annotated 1953
33          32B-2-803, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 32B-2-212 is enacted to read:
37          32B-2-212. Division of Consumer Purchasing.
38          There is created with the department the Division of Consumer Purchasing to establish
39     and administer:
40          (1) the wine subscription program described in Part 7, Wine Subscription Program; and
41          (2) the consumer purchasing system described in Part 8, Consumer Purchasing System.
42          Section 2. Section 32B-2-701 is amended to read:
43          32B-2-701. Definitions.
44          As used in this part:
45          (1) "Division" means the Division of Consumer Purchasing created in Section
46     32B-2-212.
47          (2) "Subscriber" means an individual who subscribes to a wine subscription as
48     described in Subsection 32B-2-702(2).
49          [(2)] (3) "Subscription program" means the wine subscription program established in
50     Section 32B-2-702.
51          [(3)] (4) "Wine subscription" means an arrangement in which a customer pays a
52     recurring price at regular intervals for a product that involves the shipment or transportation of
53     wine.
54          [(4)] (5) "Wine subscription business" means a person that:
55          (a) sells or offers for sale a wine subscription; and
56          (b) contracts with the department to participate in the subscription program.

57          Section 3. Section 32B-2-702 is amended to read:
58          32B-2-702. Wine subscription program.
59          (1) The [department] division shall establish and administer a wine subscription
60     program as described in this part.
61          (2) The subscription program shall permit an individual to subscribe to a wine
62     subscription that a wine subscription business sells or offers for sale by:
63          (a) enrolling in the wine subscription program in a manner the [department] division
64     prescribes;
65          (b) authorizing the [department] division to purchase the wine subscription in the
66     individual's name;
67          (c) paying the [department] division, in a manner the [department] division prescribes:
68          (i) the price of the wine subscription;
69          (ii) in addition to any tax, the markup described in Subsection 32B-2-304(4); and
70          (iii) a fee the [department] division charges in accordance with Subsection
71     32B-2-703(1); and
72          (d) designating the state store or package agency at which the individual would prefer
73     to collect the wine.
74          (3) The [department] division shall:
75          (a) designate by contract with a wine subscription business the department warehouse
76     to which the wine subscription business ships or transports wine under the subscription
77     program;
78          (b) deliver wine purchased through the subscription program to the appropriate state
79     store or package agency; and
80          (c) notify a subscriber when wine purchased through the subscription program is ready
81     for the subscriber to collect from the state store or package agency described in Subsection
82     (3)(b).
83          Section 4. Section 32B-2-703 is amended to read:
84          32B-2-703. Fees -- Rulemaking.
85          (1) The [department] division may charge a fee as part of the subscription program:
86          (a) in accordance with Section 63J-1-504; and
87          (b) to cover costs to the [department] division for administering the subscription

88     program.
89          (2) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
90     Administrative Rulemaking Act, for the administration of this part, including rules designating
91     which package agencies may receive from the [department] division wines that are purchased
92     through the subscription program.
93          Section 5. Section 32B-2-801 is enacted to read:
94     
Part 8. Consumer Purchasing System

95          32B-2-801. Definitions.
96          As used in this part:
97          (1) "Consumer purchasing system" means the consumer purchasing system established
98     in Section 32B-2-802.
99          (2) "Division" means the Division of Consumer Purchasing created in Section
100     32B-2-212.
101          Section 6. Section 32B-2-802 is enacted to read:
102          32B-2-802. Consumer purchasing system.
103          (1) The division shall establish and administer a consumer purchasing system that:
104          (a) allows a person to:
105          (i) order an alcoholic product from an approved vendor through the division; and
106          (ii) pick up an alcoholic product ordered as described in Subsection (1)(a)(i) from a
107     state store or package agency; and
108          (b) requires a person ordering an alcoholic product as described in Subsection (1)(a) to,
109     at the time the order is made:
110          (i) designate a state store or package agency at which the person would prefer to collect
111     the alcoholic product; and
112          (ii) pay the division for the alcoholic product order in full, including:
113          (A) the cost of the alcoholic product; and
114          (B) in addition to any tax, the markup described in Section 32B-2-304.
115          (2) The division shall:
116          (a) ensure that an alcoholic product ordered through the consumer purchasing system is
117     shipped or transported to a department warehouse;
118          (b) deliver an alcoholic product ordered through the consumer purchasing system to the

119     appropriate state store or package agency;
120          (c) notify the person who ordered an alcoholic product through the consumer
121     purchasing system when the alcoholic product is ready for the person to collect; and
122          (d) administer the consumer purchasing system in a manner that:
123          (i) is efficient;
124          (ii) ensures timely delivery of alcoholic products; and
125          (iii) frequently updates a person who orders an alcoholic product through the consumer
126     purchasing system on the status of the order.
127          (3) The division may not require that a person order a specific quantity of an alcoholic
128     product that is:
129          (a) different than a quantity the vendor offers for sale; or
130          (b) larger than the smallest quantity the vendor offers for sale.
131          Section 7. Section 32B-2-803 is enacted to read:
132          32B-2-803. Rulemaking.
133          The commission may make rules in accordance with Title 63G, Chapter 3, Utah
134     Administrative Rulemaking Act, to carry out the provisions of this part.